PROJECT REPORT

“A STUDY ON PERFORMANCE EVALUATION OF MUTUAL FUNDS

AT KARVY STOCK BROKING LTD, HOSPET”.

BY K.VIJAY
20G0E0018

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

DR.K.VIJAYA NIRMALA MADAM M. Sanjay kumar
Assistant Professor Cluster Manager
Department of MBA. Karvy Stock broking
LTD...Hospet.

Department of MBA

ADISHANKARA INSTITUTE OF
ENGINEERING AND TECHNOLOGY
Ref: No. KSBL/Proj/2022-23 Date:21st July,2022

CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr.K.VIJAY – REG No 20G20E0018, an MBA

student of Audishankara Institute of Engineering and Technology, Gudur,
.- 524101 Affiliated to JNTU.Ananthapur have completed a lnternship /
Project Report / a study on “Performance Evaulation of Mutual Funds, at
KARVY STOCK BROKING LIMITED, HOSPET" during the period
from 20th MAY 2022 to 20th June2022 in our HospeT Branch under the
guidance of Mr.Sanjay Kumar.M, Manager, Broking Dvn. Hospet.

He has completed the project work and submitted the report on the same. We
wish him success in all his future endeavors.

Karvy Stock Broking Limited

DEC LGkATTON
ACKNOWLEDGEMENT
 Table of content

S. No Subject Page no
Executive summary 1

Chapter 1 - introduction
1. i Industry profile and Company profile 3
1.2 Promoters 7
1.3 Vision and mission 7
1.4 Products services profile 8
1.5 Area of operation 8
1.6 Infrastructure facility 9
1.7 Competitors information 10
1.8 SWOT analysis 10
1.9 Future growth and prospects li
1.10 Financial statement 12

Chapter 2 — conceptual back ground and literature review

2.1 Theoretical back ground of the study 16
2.2 Literature review with research gap 25

Chapter 3- research design

3.1 Statement of the problem 29
3.2 Need for the study 29
3.3 Objective 29
3.4 Scope of the study 30
3.5 Research methodology 30
3.6 Hypotheses limitations 30
3.7 Chapter scheme 31

Chapter 4 — analysis and interpretation

4.1 Analysis and interpretation of the data 33

Chapter 5 — findings, conclusion and suggestions

5.1 Summary of findings 54
5.2 suggestions 54
5.3 Conclusion 55

Bibliography 56
Annexure 57
 List of tables and graph

S.NO Particulars Page No

4.1 Table no. 4.1 showing NAV returns of SBI small cap fund 34
4.2 Graph no 4.1 showing NAV returns of SBI small cap fund 35
4.3 Table no 4.2 showing NAV returns of HDFC 36
4.4 Graph no 4.2 showing NAV returns of HDFC 37
4.5 Table no 4.3 showing NAV returns of Axis 38
4.6 Graph no 4.3 showing NAV returns of Axis 38
4.7 Table no 4.4 showing NAV returns of Reliance mutual fund 39
4.8 Graph no 4.4 showing NAV returns of Reliance mutual fund 40
4.9 Table no 4.5 showing NAV returns of Kotak small cap fund 41
4.10 Graph no 4.5 showing NAV returns of Kotak small cap fund 42
4.11 Table no 4.6 showing Comparison of NAV returns of small cap 42
funds
4.12 Graph no 4.6 showing Comparison of NAV returns of small cap 43
funds
4.13 Table no 4.7 showing NAV returns of SBI equity hybrid fund 44
4.14 Graph no 4.7 showing NAV returns of SBI equity hybrid fund 45
4.15 Table no 4.8 showing NAV returns of HDFC equity fund 46
4.16 Graph no 4.8 showing NAV returns of HDFC equity fund 46
4.17 Table no 4.9 showing NAV returns of Reliance equity fund 47
4.18 Graph no 4.9 showing NAV returns of Reliance equity fund 48
4.19 Table no 4.10 showing NAV returns of Kotak equity fund 49
4.20 Graph no 4.10 showing NAV returns of Kotak equity fund 49
4.21 Table no 4.11 showing Comparison of NAV returns of equity 50
fund
4.22 Graph no 4.11 showing Comparison of NAV returns of equity 50
fund
 Executive summary

As a partial fulfillment of MBA I was compulsory to experience

internship meant for 1 month. I have prepared this report in this
regard on “A Study on Performance Evaluation On Mutual Funds”
undertaken at KARVY Stock Broking Ltd, Hospet.
I chose this topic to learn about the performance of mutual funds.
Another objective is to compare the risk involvement and the return
in the selected mutual funds comparatively, to identify the scheme
which yields highest return. For this study I have collected data
from secondary sources. For arriving the analysis Treynor's,
Sharpe's, and Jensen's is being used to know the returns which
provides the highest and the least yields. It is analyzed that the
performance of Indian mutual funds a far performance measures, a
few funds demonstrate similarly with straight relationship of
returns and risk. A few funds don't exhibit relationship; a few
funds have outperformed both as far as Treynor's measure and
Sharpe's measure. However a few funds showed unrivalled
performance as far as precise risk yet did not do as such in
appreciation of aggregate risks.
From the discover we recommended that SBI, ICICI, HDFC, AXIS,
Reliance, Kotak Mahindra, being performing better from the
analysis of beta, standard deviation, Treynor's, Sharpe's ratio for the
chosen period of study.

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 Chapter 1

Introduction

Page | 2
 1. Industry profile:

Since 1990, the Indian Treasury Department has become a change.

Domestic industrial banksand financial institutions in the 1970s.
In fact, there is only one other role in the capital market.
Financial liberalization has broken the Indian financial services sector.
Prior to financial liberalization. The Department of Financial
Services has been developed in this area with some areas.
Some of the key factors are:

1. Other restrictions that meet interest rate requirements and currency rates.

2. Below Ernst, the price of the bonds being done is more than solving
capital issues.

3. Lack of credit and credit research institutions.

4. Lack of information on international development in the financial sector.

After the liberalization of the economy, all the financial sectors

have become marginalized, and now every day is a new
expression of new financial products and services. It is therefore
important that the situation is now classified by financial innovation
and financial creativity and prior to going deep, should understand
the meaning and purpose of financial services.
All kinds of activities that are usually experienced, can be carried
on "financial services". In a broad sense, the "deposit and deposit
allocation" means. This includes all activities fortransferring
savings to an investment.
Financial services are also known as financial arbitrage. There are
many investors who are financially funded and needy financial
supporters for customers and especially for customers. In today's
financial situation, "equity and joint stocks" are many concepts. A
mutual fund is auctioned by many investor money, and holders of
investing integrity in different bonds.
Investment can be a mix of stocks, bonds, money market bonds or all of
them.
sector banks have entered into mutual funds.
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In 1992, mutual funds were created in Birla Mutual Fund HDFC,
JM, Kodak Mahindra Mutual Fund, ICICI Proprietary Mutual
Fund and Tata Mutual Fund.
In the last years, the foreign investment fund coordination program
has taken the ancestral mitigation fund from the kite. Currently,
about 30 funds have been operating about 1000 projects. These
bonds are organized professionally by unit holders, and each
investor has a portfolio- dependent ratio under dependency
ratio. When bonds are sold, any benefits, but are subject to
loss. A mutual fund is sure to send to many investors the share
of public financial goals. Money Collected into various types of
bonds, financial managers purchased securities for money
market instruments. The income and capital received by the
investment are made by pro- estimation.
Mutual funds can be raised in mutual funds. Investment in mutual
funds gives you the opportunity to invest in a few thousand
rupees.
Asset management companies are sponsors to invest in investment
purposes. It acts as a liability for the assets of the fund and acts as
a third party for the service of the unit (the customer).
In the Indian context, the sponsor has an asset management
company and a majority stake. In some cases, Sponsor Asset
Management Company (AMC) can hold 100% stake. For
example, Birla Global Fund sells Birla Sun Life Management
Company Limited. Havedeveloped a lot of funds. You can also be
asset management for money collected under the scheme. Mutual
funds depict vehicles for joint ventures, when funds share the
program.
In 1986, funds were only available in India. Public and public
insurance companies are allowed to provide a subsidiary company
at Mutual Fund. SBI, Canara Bank, LIC, GIC and a number of
public

Page | 4
Page | 5
 Company profile:

Background and inception of the company: In 1982, KARVY Consultant began a Practical Audit
Committee in Hyderabad. Initially provides auditing and taxation services with l50000Rs to
auditors. Then he went to the registrar and participated in transaction activities and financial
services.
KARVY — the latter in the work K.A.R.V.Y meant for 5 directors namesK - Mr. Kutumba Rao
A - Mr. Ajay Kumar

R - Mr. Ramakrishna M SV — Mr. Vikram Singh

Y — Mr. Yugandhar

Together with KARVY, a strong IT The worker is able to give a moral and professional
background. The vision of the profession is the KARVY, which is a new area selected by dealing
with 204 common issues in its new year 1994-1995, which received a leadership position in the
Indian stock market, the largest after a decade of faithfulness and devotion After the KARVY has
been upgraded to manage a range of financial services and servicesthat have been proved good
business liaison related to capital markets.
Today KARVY is the company in the last decade and a half, has access to millions of financial
institutions and shareholders with banking regulatory bodies. KARVY has developed a real
relationship between the industry and people's finances. In January 1998, KARVY received the
first contribution to submit to Andhra Pradesh.
In 1981, KARVY was in normal shape. It was started with a small group of organizations and
management chartered account organization by the main company. KARVY Advisor Ltd. We
started out in the field of registration of automatic advice, financial accounting, games and
partnerships in 1985. Since then, KARVY, one of the leading integrated service companies in
India, has been developed to use our expertise and the best expertise to improve our services to
provide various professional and new persons.
In the past 20 years, KARVY traveled the path to create a goodwill in the form of an integrated
financial service provider that provided a full service. We broke this service into a new service
and service. Overall, our higher education qualifications has come to us in

Page | 6
various parts of the economy due to the lack of trust and prosperity in the safe conditions and the
prosperity of the world with the financial technology-cut humanity and consumer protection
economics.
Our values and perspectives work as structures to secure our services and our services as an
excellent financial institution. What are our firms in our fortress in our financial institutions?
This curve applies to the Full spectrum delivery of financial services such as stock market
personal finance consulting services, such as deposit participation, mutual funds, bonds, fixed
deposits, commercial bank and corporate finance, brokers Broking material, financial products,
etc. Equity placement, IPO, among others
Nature of business carried

• Stock broking

• Mutual Financial Services

• Deposit Partnership Services

• Financial product delivery

• Corporate Finance and Business Bank

• Broking of goods

• Insurance broking

• It runs services

• Personal Finance Advisor Services

• Registrars & transfer agent

Page | 7
 2. Promoters:

C. PARTHASARTHY, chairman & managing director

M. YUGANDHAR, managing director

M.S. RAMAKRISHNA, executive director Management team

Mr. K Sridhar Mr. V Mahesh Mr. V Ganesh Mr. S Gopichand
Mr. I RamaswamyMr. M S Manohar
Mr. S Ganapathy Subramanian

3. Vision, mission and quality policy:

Mission:

In the KARVY Declaration, it was announced that "industrial finance and people need to be
united".
KARVY works as an intermediary between professionals and people.

Vision:

The company's vision is very clear and heavy. Create an organization that installs others forthe
next benchmark
Quality policy:

Provide excellent quality financial services. In this process, KARVY takes customers beyond
expectations.

Page | 8
 Quality objectives:

Quality Policy, KARVY, in a home, in the process of providing interactive cleavalternam,

creating an open and friendly relationship to its customers. Its investors can help create
partnerships with service agents and sellers and help customers manage their investment.
Providing high quality standards to your employees by answering customer needs and providing
the necessary knowledge and skills. Try to create specific standards in simplicity and honest
values and business ethics.
4. Product / Services Profile
• Stock broking
• Mutual fund services
• Depository participant services
• Financial product distribution
• Corporate finance & merchant banking
• Commodities broking
• Insurance broking
• Personal finance advisory service
• Registrars & transfer agent

5. Area of operation - global, national, regional :

•t• KARVY stock broking limited:
The National Stock Exchange (NSE) Mumbai Stock Exchange (BSE), Hyderabad Stock
Exchange (HSSE) has opened up many services to achieve many customer goals. Creating more
opportunities for customers by opening investment-based investments to research-based
consulting services. There is no limit to development, success does not recognize any degree. The
ultimate goal is to help the client create waves in their portfolio and grow fully investor.

.• KARVY global services limited:

KARVY Group Special Business Process Outsourcing Unit Efficiency and tradition expertise of
KARVY's financial services helps enter the world and enter confidently.

Page | 9
Here are many distribution models to meet unique business needs and customized service bills.
Our service team includes options to choose a lot of different choices and choices.
It distributes engineering and management tasks or new skills. Our service is strictly against
international standards. Our outsourcing model has created corporate customers and forcorporate
and functional philosophy and domain expertise. Productivity management controls costs,
regulates costs, improves accountability, and promotes overall interest for other interests.
We serve in the main market segment that arises from the specific services requirements. We have
a large vertical market security banks and insurance services (BFIS). Retail and businessproducts,
entertainment, energy and benefits and property protection.
â• KARVY realty & services (India) limited:
KARVY Reality and Services India Limited (KRSIL) provides real estate and property services,
valuable security services and provides real estate and consulting services with individuals and
companies. KARVY Realty and Services (India) are limited, get a real bite! Pierre Reality &
Services India improves these services, enhances tradition confidence and has high quality of
investor and customer service and world class properties.
KARVY Reality and Services India Limited welcomes the real list of reality options, so you have
absolutely no faith and absolutely profitable forms.
6. Infrastructure facilities :

All KARVY stock broking agencies are situated in such place where all infrastructurefacilities are
good.
Our overhead office is located in Hyderabad India it has good infrastructure all KARVY stock
broking agency branches collectively occupy more importance and it gives preference to
infrastructure facilities. As on march 31st 2010 KARVY have 550 branches all over the India.
Achievements:

• In India's top 5 points (4% of the NSE)

• India Registrar 1 and Stock Exchange Agent
• In three parts of the contest

Page | 10
 • A large branch and business associate
• Certified ISO 9002 services through DNV
• Most investment funds include 10
• The largest financial products of financial production
• MIS exit at the top 50 places used in India in Asia
• Full-time release

7. Competitors information
• ICICI direct
• HDFC security
• India's bull securities limited

8. SWOT analysis :

This is an analysis of strengths weakness opportunities and threats for KARVY the
BASAVANAGUDI.
Streneths:

National level branches

The known brand name in financial product delivery
Multiple production operations in financial products
Top 5 Stock Brokers In The Country
Strong Brand Remedies (Retail Marketing) in retail investors
It is ISO 9000-2000 certificated operations by DNV
It never compromise with quality

Weakness:

Despite many manufacturing companies, not all employees are productive

Systems are still not prompted for quality improvement
Frequent clashes in the workflow between branches
Inexperienced staffs
Less scope for performance appraisal of workers

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 Opportunity:

Can make use of sustained growth in retail segment of financial products

Due to high awareness of financial products among general public business growth
could be higher
Can make of technology to market products (e-selling)
Loyal customers
Scope for additional capital investment and future expansion
It has large clients
Untapped market

Threats:

Contrary to competition from contemporary players in the market

Reduce margin with commission commissions.
Volatile foreign exchange rates
Stiff contenders from existing players in the market
Inadequate research and development

9. Future growth and prospectus:

Our leadership is aimed at this leadership, which has established the innovative, enterpriseand
techno-running organization, has established the service's highest standards and business ethics.
• It is motivated by a vision that will share KARVY as an integrated financial service
company with the full working force.
• Focus on investor services in a single mind
• Establishing KARVY as a residential name for financial services
• Building Industrial Criteria
• Stability establishes leadership in all selected areas. Be an integral part of the industry
funding and fundamental values, integrity, career and innovation discoveries.
• View is a profound reputation among all arbitrators and regulatory authorities in
capital and financial markets.
• This helps in achieving excellent meaning in these seven components. The origin of
the next name is based on the performance of the company.

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 • When an element changes, others will be affected. For example, internal life planning
and management has an effective impact on organizational culture (management
style) and impacts the company's final potential.

10. Financial statements:

Profit and loss

Particulars 31st March 2018 31'tMarch 2017

(Rs in Cr) (Rs in Cr)
Revenue
Revenue from operations 14713.57 28016.53
Other income 15.14 9.69
Gain on disposal of business 26193.99
Total 40922.70 28026.22
Expenses
Operating expenses 22423.39 44929
Employee benefits 2265.47 3513.65
Finance costs 11195.71 21062.62
Depreciation and amortization 244.79 291.88
Other expenses 2775.34 2750.50
Total expenses 38904.70 32110.94
Profit/(loss) before tax 2018.00 (4084.72)
Income tax expenses
Current tax 198.94
Deferred tax 643.21 (1117.45)
Profit/ (loss) after tax 1175.85 (2967.27)
Profit for the year from discontinuing operation BT (1522.70) 266 57
Current tax (695.39)
Deferred tax 367.82 (185.04)
Profit for the year from discontinuing operations AT (1195.13) 451.61

Page | 13
Balance sheet

Particulars As at March 31st As at March 31st

2018 (Rs in Cr) 2017(Rs in Cr)
Equity and liabilities
Share capital 7825.00 7825.00
Reserves and surplus 32845.50 31669.65
40670.50 39494.65
Noncurrent liabilities
Long term borrowings 14519.40 88609.13
Other long term liabilities 44.87
Long term provisions 2607.65 4662.41
17127.05 93316.41
Current liabilities
Short term borrowings 2285.51 9239.17
Trade payables
Total outstanding due to micro and small enterprises
Total outstanding due to creditors other than micro 65.60 280.78
and small enterprises
Other current liabilities 5590.49 49089.67
Short term provisions 458.30 187.40
8399.90 58797.02
Total 66197.45 191608.08
Assets
Noncurrent assets
Fixed assets
1. Tangible assets 109.94 605.00
2. Intangible assets 3.43 264.80
3. Intangible assets under development 25.97
Noncurrent investments 3924.68 3910.00
Deferred tax asset(net) 1038.08 1681.29
Long term loans and advances 18551.75 12116.46
Other noncurrent assets
23627.88 126603.56
42569.57 65004.56
Total 6619.45 11608.08

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Financial statement analysis:

4 From the above we can analyze that companies performance level has been increased
when compared to previous year.
4 The increase in sources of funds and application of the funds has made the company
to enhance its financial performance level
H Current assets exceeds current liability, helps the company to meet working capital
requirement.
H Liquidity position of the company is good
H Having healthy financial position the company can increase its competitiveness

Learning and experience:

It's a pleasure to express about my learning experiences in KARVY got experienced in trading of
shares, commodities, derivatives, plans an schemes in mutual funds, bonds, long term investments
etc, by working with the project got the practical knowledge about all trading activities.

Page | 15
 Chapter 2

Conceptual back ground and literature review

Page | 16
 Introduction:

Mutual Funds primarily involve investors' money with some public financing objectives. These
shares are invested in capital markets, shares, securities and others Units with Unit Holders
(Investor).
Mutual funds KARVY investor advisory service distractions lead support and ensure that your
investments are our quality. We offer KARVY to help you reach your goals.
KARVY's primary financial service provider provides the top five of all business sectors in the
country with 16 million different investors integrating various services in various positions and
corporate India which provides more than 300 enterprise services?
Securities, Fixed Deposits, Merchant Bank and Company Funds, Insurance Products Brokers,
Individual Financial Advisory Services, Equity Opportunity, IPO, Hour Financial Products,
KARVY Financial Services. Most importantly, KARVY is a professional executive team and
searches for technology, functionalities and various industrial areas. Objective of the study is to
analyze the mutual funds. NAV returns and scheme performance of five mutual funds i.e., SBI
mutual fund, Reliance mutual fund, Axis mutual fund, KOTAK mutual fund and HDFC mutual
fund are taken for analyzing.
1. Theoretical frame work to mutual funds:
o Introduction:
Everyone dreams of a luxury life, something to eat Wise life is usually associatedwith wealth.
So most people want to know the question; How can I make money? Or how am I rich?
Making money is not really difficult, it is a matter of planned and planned projects. When
available in a small amount you can find ways to use the funds to make more money.
Investments in the stock market, real estate, commodities etc., can double the money. One way to
invest in all mutual funds. Therefore, in significant ways, people can make their capital by
investing in a single fund.

o What is a common treasure or MF ?

Mutual Funds mainly collects investor funds Who share some common financial goals These
funds are invested in stock market, bonds and other securities and other investment methods such
as real estate, commodities etc. Those who have the

Page | 17
proceeds of operating income and capital (investor) will be shared according to theownership
units.

o Fund Feature:
• Mutual funds are already associated with investors who have collected
their money. The ownership of mutual funds is in the hands of investors.
• In case of a joint fund, the shareholder and beneficiary of this fund are the
same type of investor.
• Investment experts manage mutual funds and other service providers, who pay
for the services provided by the fund.
• Snooker money is invested in the market capitalization of the money. The
clipboard value will be updated every day.
• Entities control the component of investor funds The value of units varies
by changing the capital's valuation day. The value of a single investment entity
is called NA or NAV.

o Benefits of O Mutual Fund:

1. Investor frees four main sanctions:

• Convenience and Knowledge: Investor does not have to go through the solid work of stock
research and selection and there is no need to track the market for portfolio management.

• Time: One of your precious time spent each day to monitor your portfolio is free.

Complexity: Equity and debt markets involved in equity are exempt from complications.

2. Diversification: Investment in mutual funds enables a well diversified portfolio with a very
low investment. Diversification in various securities reduces risk with investment.

3. High Risk-Change Returns: Most equity funds have issued results index, while other assets
such as Fixed Deposit Post Office plans etc. Low returns

4. Business management: Investors buy the fund because they do not have the time or
expertise to manage their portfolio. For a small investor, a mutual fund is a relatively easy
way to get a full time manager to locate and monitor your portfolio.

Page | 18
 5. Low entry barriers: Any investor can invest in a mutual fund. There is no need to open
a broker or a D-Mate account to invest in a mutual fund. Other investments can be reduced as
a minimum wage in a mutual fund. 500

6. Liquidity: The easiest and fastest speed leads to high liquidity, the person can depend
on his optimum and exit from the fund (open appeal).

7. Transparency: The level of transparency in this industry is very high. Investors can see
their funds on NAV on a daily basis. In addition, most of the funds disclose their
portfolio holdings on a monthly basis.

8. Tax Saving: Mutual Funds are exempt from capital gains due to portfolio churn. If an
investor changes his holdings, he has to pay it. Thus, mutual funds are cost effective methods
of portfolio management. In addition, there are also low wages (tax saving funds) that help in
leveraging tax-saving. Compared to other tax-saving opportunities, they have the least lock-in
time and have higher return prospects

9. Innovative plans to meet the unique needs of different investors: There are plans that
provide international diversity to reduce geographical risk. Is a derivative fund which adopts
various derivative strategies that run anywhere in the market. The Capital Protection
Fund provides a feature of capital protection along with returns related to the market.
o Categories of Mutual Funds:

As a rule of thumb, so that investors can enter or exit the fund, mutual funds are usually divided
into two categories:
• Open-end funds: Investors can buy and sell units at any time.

• Funds blocked till the end: This money is from these financial investors, therefore, after
expiry of the concession, new investments cannot be financed. If the financial stock is in
the list, the units can be changed, the stock (such as the Morgan Stanley Development Fund)
can be traded. Recently, most new fund offerings can end-to-end, periodic stops, such as
monthly or weekly units, can be assessed during specific periods. Therefore, there are
relatively few liquidity in such funds.
Depending on the investments of nature investments, there are mutual funds of different classes.
There are three classes you choose to invest in your risk-return profile.

Page | 19
 • Equity Fund

• Balanced funds

• Loan funds

Equity Fund:

These funds are invested in equity and equity instruments. By taking stock prices, these economic
performance impacts and losses, short-term fluctuations in the market are usually long, at the
same time with slight fluctuations, which make much profit. At the same time, thevalue of such
money can increase capital value, historically, equity has left all propertyclasses in the long run.
Therefore, the investment in the Unit Fund must be at least 3-5 years old.
Balanced funds:

His savings industry includes the Trieste Ridge Stack count, which enters into debt and
equity equities and debt financing. For the relief fund investors, the ADHD Mutual Fund vehicle
is reducing the risk of other financial products: • Credit estimation fund, • Stock- based funding
Debt Financing:

They only invest in debt reading, are a good option for investors, and the risk of partnership is
different. It is investing in some revenue instruments, such as securities, debt securities,
government securities and deposits (CDs), trade magazines (CP) and cash funds. If necessary,
submit your investment trend and money.

Page | 20
Ris—k return grid:

Such funds are in such arbitrage funds, which are not selling futures (without divestment) and have
no property properties. They can own equity and equity related equipment 50% (subject to SEBI
regulations) or 80% (subject to the latest SEBI regulations).
The FMP risk-return profile's current interest rate is seen in viewpoint and rate of interest and
interest rates.
o Innovative funds:

Funding Fund: The funding fund mutual fund scheme, which primarily invests in mutualfunds or
other mutual fund schemes. There is a debt-based fund for funding purposes.

Benefits:

• Feature
• Flexibility
• Cost factor

Disadvantages:

• Fee structure
• Stock-wave portfolio tracking

Page | 21
Derivative Fund: They invest in the stock markets, which limit the risk of negative, selecting
hedging policies and providing additional revenue through coastal processes.
Benefits:

• Limit counterfeit risk: Generally, derivatives are used for range objectives, so they
can limit the risk of equity. Therefore, this fund is suitable for the falling market.
• High efficiency to encourage returns: It provides high returns in short or long term.
But there will be high risk
Disadvantages:

• If the fund position does not change, the investor can lose his money.
o risk profile returns

The only way to monitor the fund is by calling it a less risk category - less risk. But if
youtake a low position, it could be at a higher risk - a higher income category
Universal funding at international level: They invest in foreign companies equity and equity
instruments.
Benefits:

• Geographical expansion for investors

• It provides extra flexibility and flexibility to overcome the country's unique
phenomena.
Disadvantages:

• It fluctuates in expensive markets like Brazil or Russia

Capital Protected Fund (CPF):

The objective of these funds is to provide the right revenue for the protection of capital. Trying to
understand the defensive strategies of investment using financial jars to isolate a riddle. But this
strategy is based on a simple formula that anyone can do. Let us consider the desire to invest Rs 3
a year. If you look at 8% page date paper returns, you can invest in any rupee. For such a
three- year end of three years in such a paper, It will be 100.77. If there is a good return on a
dangerous path, he will have more than 100 investment risks. On the other hand, if he loses its full
speed. He still manages 100 rupees at the end of three years.

Page | 22
In another type of investment protection strategy, debt and equity has been set up and changes
have been made from time to time (daily, weekly, pensioner or monthly). This is called Dynamic
Assess Allocation.
The scale is:

This is an initial leverage that is applicable to the portfolio. The risk of deciding whether a
portfolio will be revealed. This usually happens from 2 to 5, will be the most useful portfolio
equity exposure in the growing market.

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8 I flu' L‹ iJJ1‹zJi'i\ ‹ it i‹uJ1 irf \ I i‹• 5€ f•i'i iu•. fJ ion
i'.th t. iI it r\o\ cl>ti›qe‹l ur\1il the' in II u‹i1y.

Page | 23
Types of mutual fund:
Mutual Who should Objective Investment Risk Ideal
fund Invest Portfolio Investment
Types
Diversified Moderate High Equity shares High 1-3 years
Equity and growth
funds aggressive
investors
Sector Aggressive High Equity shares Very high 1-3 years
fund investors growth
Index fund Moderate To generate Portfolio like Returns of 1-3 yeas
investors returns BSE, nav. Very
which are SENSEX, with index
similar to NIFTY, etc. performance
the returns
of the
respective
index
Equity Moderate Long term Equity shares High 1-3 years
linked and growth with
saving aggressive tax saving
scheme investors
(ELSS)
Balance Moderate Growth and Balance ratio Capital Over 2
fund and regular of equity and market risk years
aggressive income debt fund to and interest
investors ensure higher rate risk
returns at
lower risk
Bond Salaries and Regular Predominantly Credit risk Over 9-12
funds conservative income debenture and interest months
investors government rate risk
securities,

Page | 24
 corporate
bonds
Gilt fund Salaries and Security Government Interest rate Over 12
conservative and income securities risk months
investors
Short term Investors Liquidity Call money Linked 3 weeks
funds with surplus and commercial interest rate 3 months
short-term moderate papers, risk
fund income treasury bill ,
short-term
G-secs
Liquidity Investors Liquidity Treasury bills Negligible 2 days
funds who moderate certificate of risk 3weeks
park their income deposits,
fund in preservation commercial
current of capital papers,
account or securities call
short term money
bank fixed
deposits

Page | 25
 1. LITERATURE REVIEW

Henricksson (1984) surveyed execution to the extent showcase timing limits with trail of
116 open-completed hypothesis arranges in midst of the historical, 2/1980 and 6/1980.Correct
outcomes got specified unacceptable arranging capacities in store executives.
Huhmann (2005) opines that extended number of shared backing wherever all through the world,
mainly in made countries, implies that money related authorize slant for this indirect strategy for
low-dangerous wander.
Tyoner and Mazuy (2010) surveyed the execution of 57 save executives to the extent that bazaar
limits where identified, bolster boss which not viably bazaar. This prescribed theorists absolutely
hooked changes in bazaar. The survey got strategy assessing execution in regular resources.
Smith and Tito (2011) reviewed three for the most part used composite measures of hypothesis
execution and investigated their amongst associations and put forth another choicethat considered
evenly. Which situating benefits that introduce, the choice measure conveyed little complexity in
execution. Strangely, when execution examinations were made with the market, choices changed
inside and out. In context, substitute portion prescribed was insinuated with changed.
Robert Carlson's (1970) general execution shared resources in the midst of the period 1948-
1967. In any case, put complement dismembering variety documents, classified times. Point by
point store execution in regard bazaar. He in like manner separated execution as for size, cost
extent, and another benefits figure. The results demonstrated no relationship with size or cost
extent, notwithstanding the way that there was an association among execution and a measure of
new sponsors consider.
Mcdonald (1974) assed the execution of 123 shared backings in association with the
communicated focus of each store. The results showed a positive association between store
objectives and risk measures along these lines proposing a save's danger increases when it ends
up being more strong.

Page | 26
Markowitz (1991) saw that ordinary money related master expect large arrival then “returns
certain judicious”, i.e., theorist searching to “ increase predictable proceeds” and “ utmost
shakiness” (possibility) 2 conflicting goals which balanced different contributing at time. By the
day's end, bolster executives are required traded between arrivals.
Grinblatt and Titman (1994) declared normal store execution relative deductions a comparable
standard. In any case, surmising change even from a comparative measure with different
benchmarks. Check of factors of store execution reveled using save abilities, instance, net asset
regard, stack, and organization charge testified performance occurs. Captivating to find significant
association among turnover and limits of hold boss to secure irregular returns.
Turan M.S, Bodia B.S and Sushil Kumar Mehta (2001) examined the execution of 54 recorded
arrangements of basic backings on the preface of step by step data on NAVs. Hence, other than
peril and return examination, the risk adjusted execution measures have been used.The audit
reveals that altogether low level of peril is connected with the picked arrangements and paying
little respect to the division concerned.
Gupta (1981) had set up the execution evaluation audit on qualities. Initiating study Indian setting
an important responsibility field then seen the yardstick benefit qualities predefined.
Obaidullah and Sridhar (1991) surveyed the execution of two vital improvement arranged basic
hold arranges - Master share and Can share. They contemplated that both these advantages
returns. Mastershare out man evered on a total peril adjusted commence while canshare did on a
market chance adjusted preface.
Kaura and Jayadev (1995) execution advancement arranged arrangement by using Jensen,
trynor and sharpe measures and find arrangements which bad performed.
Jayadev (1996) surveyed execution of two arrangements in the midst of the period, june 1992 to
march 1994 to the extent returns benchmark examination, improvements, proper duration
aptitudes. He assumed that arrangements fail to present than anything widening unacceptable.
Main execution wont allude to aptitudes of the save executives.

Page | 27
Sondhi H.J and Jain P.K (2005) investigated division basic hold esteem arranges. The center
time (1993-2002) were lower private esteem arranges would do well to execution due than its
noticeable quality, bolster organization sharpens, particularly investigated stock decision
aptitudes. Open region arrangements not capable dismissing budgetary pro conviction related with
high prosperity. The benefits did not show consistency in execution.
Ippoloto (1992) point by point that save decision by money related authorities relies on upon past
execution advantages of price streams into achieving resources more rarely stream out resources.
Goetzman and Peles (1997) developed proof in monetary expert mind science impacting
save/plot assurance and trading.

Saba Asish and Rama Murthy Y Sree (1993-94) perceived entry, fluidity, prosperity and
asset thankfulness accepted staggering part slant arrangements of money related experts.
Rajarajan (1997,1998,2000,2003) has done wide research on the characteristics of monetary
experts. He portrayed solitary theories on their wander size and measurement properties. Hein
like manner used cluster examination to section particular theorists in light of their life styles. He
accomplished out purpose of premium the connection between lifestyles of individual theorists
and their measurement and wander related ascribes to appreciate themand their cash related
thing needs better.
Shukal and Sing (1994) attempt the proposal whether portfolio chiefis master preparing realized
dominating execution. They point by point that esteem regular resources supervised by
professionally qualified chiefis were more risky yet favored separated over those regulatedby
others. The audit in like manner pointed out that these store chiefs defeated others as a social
event however the qualification in execution was not saw to be estimation all by significant.
Grubber (1996) tried think stupefy advancement regular backings despite not very impressive
execution of viable administered portfolios. The audit revealed that, normal resources had
negative execution stood out from the market and gave verification of enterprising nature of
underperformance.

Page | 28
CHAPTER — 3

Research Design

Page | 29
 1. STATEMENT OF THE PROBLEM:

In today's market, the market leader needs to know about market subscription strategies and
companies developing a good market share of its products. Knowledge of knowledge, company
achievements and work on channel strategies.
2. NEED FOR THE STUDY:

A mutual fund is significant commercial organization which plays significant part in progressof
nation. Their performance were in efficient way and expected in investing public, so that huge
sum of depositors will be attracted. India's equivalent rate are above 23 percent and it is
considered as highest in the world.
Here stands basic to study the depositors insights then features manipulating their investors
decision. Thus in order to find in what way far mutual funds fulfill the aspiration of the
depositors, for this training was initiated. But mutual funds are the ultimate investment or
individuals as well as a small investors, but it is not being invested as expected.
The very crucial role of this remains towards distinguish the actual routine of mutual funds then
selecting those mutual funds for their investments decisions.
3. OBJECTIVES OF THE STUDY:
Target: A special reference to mutual funds to determine the level of satisfaction ofthe
Services.
Carefully focus on customer activity for KARVY Services.
KARVY's satisfaction status with a special explanation from their mutual
fund.
KARVY determines the level of knowledge of the executives.
Identify customer feel about basic information provided by KARVY office
staff.
Find any delay in the process.
Decide on time to receive recipient check.
Research on mutual fund schemes

Page | 30
 4. SCOPE OF THE STUDY :
This study is based on a study conducted in Bangalore. Gender, income and occupation from
different age groups. This study helps identify the population, providing an opportunity to meet
customer's expectations, whether it is satisfied ornot. And it can improve services. And increase
customer expectations. And it can improve services. Increase satisfaction level.

5. RESEARCH METHODOLOGY:
• Primary data: primary data are rigid sources of information which are directly
collected. primary data collected by interacting with the employees of KARVY the fin
polis
• Secondary data: secondary data which has been collected and already compiled, it
is readily available. It is already used by others.
secondary data s collected from news paper, text books, magazines, KARVY weekly magazine,
companies report and from internet.
30 schemes have been selected in a random manner to check the performance of mutual fund
schemes. The NAV of various schemes daily is used for this period of five years, from March
2011 to March 2015 (five years). And used for the P & BSE-Sensex market portfolio. In this
study, monthly income on 91-day Treasury bills is used as a risk-free rate. The study is primarily
the second data source. Data NAV is due to be able to get from www.mutualfundindia.com
and www.amfiindia.com websites from April 2011 to mid-March2015. The Benchmark Index (S
& P BSE Sensex) is collected from data web site for a daily closing price. Bombay Stock
Exchange.

6. HYPOTHESIS:

Ho: There is no substantional transformation in returns given by the selected mutual funds. HI:
There is a substantial transformation in return giving by the selected mutual funds.

Page | 31
 7. Chapter scheme:

Chapter: 1 Industrial and company profile

This chapter includes the profile of the industry as well as the company in which the study is
conducted. This is tries to deal with trends and prospects in the industry as well as the company.
Chapter: 2 Theoretical background of the study

This chapter mainly deals with secondary data collected to support the study and the reasons to
problem of study.
Chapter: 3 Research design

A research design serves as a bridge between what has been done in the conduct of study to
realize the specified objectives. It is an outline of the projects working.
Chapter: 4 Data analysis and interpretation

In this chapter using the analyzed data we have tried to find out the intrinsic value of the company
and technical representations based fundamental and technical analysis.
Chapter: 5 Summary of findings, conclusions and suggestions

In this chapter we will actually include all that we have analyzed and what has been found. Finally
conclude checking whether the objective of the study has been achieved or not.

Page | 32
 CHAPTER — 4

ANALYSIS AND INTERPRETATION

Page | 33
 1. ANALYSIS AND INTERPRETATION

NAV - Net Asset Value.

The performance of a particular scheme of mutual fund is denoted by net asset value.

Mutual fund invest the money collected from the investors in securities markets. In simple words,
NAV is the market value of the securities held by the scheme. Since market value of securities
changes every day. NAV of a scheme also varies on day to day basis. The NAV perunit is
the market value of securities of a scheme dividend by the total number of units in a particular
date. Example : if he market value of securities of a mutual fund scheme is rs.200 lacks & the
mutual fund issued 10 lacks units of rs.10 each to investors, then the NAV per unit of
thefund is
Rs.20. NAV is required to be disclosed by mutual funds on a regular b a s i daily or weekly
—s depending on the type of the scheme.
Factors affected the NAV of the fund:

• Sale & purchase of securities

• Sale & repurchase of units
• Valuation of assets
• Accrual of income & expenses

NAV of a fund is primarily affected by the market value of the investment portfolio. The number
of units outstanding, the accrual, expenses & income re the factors that impact the NAV of a fund.
4 SBI small cap fund yrowth:

Fund category: small cap fundFund family: SBI mutual fundFund type: open ended Investment
type: growth Launch date: Jan 1" 1970
Bench mark: S&P BSE small cap

Page | 34
Asset size (Rs. Cr): 938.17(as on 31st Dec 2018)Minimum invest: 5000
Last dividend: N.ABonus: N.A
Fund manager: R. SrinivasanEntry load: N.A
Exit load:1%

Load comment: Exit load 1% if redeemed with-in 12 months from the date of allotment Table no.
4.1 showing NAV returns of SBI small cap fund
Date NAV
19 March 2014 14.597
19 Sep 2014 24.349
19 April 2015 30.458
19 Oct 2015 32.421
19 April 2016 33.084
19 Oct 2016 38.596
19 April 2017 42.571
19 Oct 2017 51.602
19 April 2018 58.61
19 Oct 2018 48.264

Page | 35
Graph no 4.1 showing NAV returns of SBI small cap fund

NAV returns of SBI

70
60

50

40

30
NAV returns of SBI
20

10
ww
0

In eroretation SBI small caD fund's NAV returns are starts from 19 March 2014 that is 14 517,
and it's returns are in the increasing mode till the month of April 2018 that is 58.61. but in the
coming months the returns are coming down, in October 2018 the returns is 48.264.

H HDFC small cap fund erowth:

Fund category: small cap fund Fund family: HDFC mutual fundFund type: open ended
Investment type: growth
Launch date: Jan 1’t 1970 Bench mark: S&P BSE 200
Assets size (Rs. Cr): 3965.73(as on 31st Dec 2018)Minimum investment: Rs. 5000
Last dividend: N.ABonus: N.A

Page | 36
Fund manager: chirag setalvadEntry load: N.A
Exit load: 1%

Load comments: exit load 1% if units are redeemed on or before the expiry of one year fromthe
date of allotment.
Table no 4.2 showing NAV returns of HDFC

Date NAV
19 march 2014 17.561
19 Sep 2014 23.791
19 April 2015 26.209
19 Oct 2015 26.452
19 April 2016 26.466
19 Oct 2016 31.525
19 April 2017 34.558
19 Oct 2017 40.136
19 April 2018 46.954
19 Oct 2018 40.937

Page | 37
Graph no 4.2 showing NAV returns of HDFC

Imerpreiaiion. i ne ninu Fier muiuai lunar is stare earning ine returns from *viarcn zo i4 inat is
17.561 to April 2018 46.954. then its market returns in mutual fund is get down to 40.937in the
month if October 2018.
H Axis small cap fund reeular plan erowth:

Fund category: Small cap fundFund type: Axis mutual fund Fund type: close ended Investment
type: growth Launch date: Nov 25" 2013 Bench mark: nifty small cap Asset size (Rs. Cr): 342.47
Minimum invest: Rs.5000 Last dividend: N.A
Bonus: N.A

Page | 38
Entry load: N.AExit load: 1%
Load comments: now, for units in excess of 10% of the investment, 1% will be charged for
redemption within 12 months.
Table no 4.3 showing NAV returns of Axis

Date NAV
20 march 2014 10.64
19 Sep 2014 17.24
19 April 2015 19.55
19 Oct 2015 19.98
19 April 2016 20.06
19 Oct 2016 22.98
19 April 2017 24.54
19 Oct 2017 26.69
19 April 2018 28.27
19 Oct 2018 24.99

Graph no 4.3 showing NAV returns of Axis

*.
c

Page | 39
Interpretation: The NAV returns of Axis mutual fund is increasing mode till the month of April
2018. The returns starts from 10.64 to 28.27. after this the returns are in decreasing mode slightly
that is in the month of October 2018 24.99.
4 Reliance small cap fund erowth:

Fund category: small cap fund Fund family: reliance mutual fundFund type: open ended
Investment type: growth
Launch date: Sep 09 2010

Bench mark: S&P BSE small cap

Asset size (RS. Cr): 5928.21 (as on 31st Dec 2018)Minimum invest: Rs 5000
Last dividend: N.ABonus: N.A
Fund manager: Samir RachhEntry load: N.A
Exit load: 1%

Load comments: exit load- 1% if redeemed or switched out on or before completion of oneyear
from the date of allotment.
Table no 4.4 showing NAV returns of Reliance mutual fund

Date NAV
20 march 2014 12.567
19 Sep 2014 22.337
19 April 2015 24.403
19 Oct 2015 26.665

Page | 40
 19 April 2016 25.578
19 Oct 2016 31.93
19 April 2017 36.789
19 Oct 2017 41.533
19 April 2018 46.178
19 Oct 2018 38.58

Graph no 4.4 showing NAV returns of Reliance mutual fund

In

April 2018. The returns are 12.567 to 46.178. but in coming days its reduced or decreased its
returns to 38.58 as on l9'h October 2018.

S Kotak small cap fund (growth):

Fund category: small cap fund

Fund family: Kotak Mahindra mutual fundFund type: open ended

Investment type: growth

Launch date: Jan 28 2005

Page 1 40
Bench mark: NIFTY midcap 100

Asset size (Rs. Cr): 889.75 (as on 31st Dec 2018)Minimum invest: 5000
Last dividend: N.ABonus: N.A
Fund manager: Pankaj TibrewalEntry load: N.A
Exit load: 1%

Load comments: exit load of 1% for redemptions or switch outs ( including SIP or STP)
within one year from the date of allotment of units, irrespective of the amount of investments.
Table no 4.5 showing NAV returns of Kotak small cap fund

Date NAV
20 march 2014 29.509
19 Sep 2014 44.84
19 April 2015 51.122
19 Oct 2015 53.815
19 April 2016 54.122
19 Oct 2016 64.957
19 April 2017 70.98
19 Oct 2017 75.597
19 April 2018 80.694
19 Oct 2018 66.041

Page | 41
Graph no 4.5 showing NAV returns of Kotak small cap fund

Interpretation: NAV returns of Kotak mutual fund is starts from 20' h march 2014 in that yearit
got earnings or returns of 29.509 and it's in increasing mode till the month of April 2018. After
this in the month of October 20l8its earnings are came down that is 66.041.
Table no 4.6 showing Comparison of NAV returns of small cap funds:

Scheme 1 month 3 months 6 months 1 year 3 years 5 years

SBI small cap fund growth 8.3 0.8 -5.5 8.5 18.8 28.3
HDFC small cap fund 9.8 2.5 -2.2 -1.0 21.3 20.1
growth
Axis small cap fund regular 6.1 1.6 1.0 1.1 13.7 20.7
plan growth
Reliance small cap fund 10.8 -0.7 -7.7 -8.2 19.2 26.0
growth
Kotak small cap fund 10.4 2.4 -2.9 -7.1 13.7 20.7
growth

Page | 42
Graph no 4.6 showing Comparison of NAV returns of small cap funds

35

30

25

20

15

10

0
1 month 3 months months 1 year 3 years 5 vears
-5

-10

Interpretation: In this the selected companies are compared with one another in that the Reliance
small cap fund is getting more return compare to others. In the past 5 years the SBI small cap
fund is leading the returns. After this Kotak small cap fund are getting high returns in the past 3
months.

4 SBI equity hybrid fund(G):

Fund category: aggressive hybrid fundFund type: open ended

Fund family: SBI funds management private limitedMinimum investment: 1000
Investment type: growth

Asset size (Rs. Cr): 26325.61 (as on 31st Dec 2018)Last dividend: N.A
Bench mark: BSE 100

Page | 43
Inception date: Sep 10 0995 Fund manager: R. SrinivasanEntry load: 00/o
Exit load: 1%

Load comment: exit load nil for the 10% of investments if exit within 12 months from thedate
of allotment and for remaining investment exit load will be 1%.
Table no 4.7 showing NAV returns of SBI equity hybrid fund

Date NAV
20 march 2014 64.49
19 Sep 2014 84.285
19 April 2015 95.439
19 Oct 2015 95.985
19 April 2016 96.747
19 Oct 2016 107.795
19 April 2017 109.863
19 Oct 2017 121.716
19 April 2018 127.561

19 Oct 2018 120.525

Page | 44
Graph no 4.7 showing NAV returns of SBI equity hybrid fund

and its returns are in the increasing mode till the month of April 2018 that is 127.561. but in the
month of October the returns are decreased to 120.525.

S HDFC equitv fund (G):

Fund class: multi cap fundFund type: open ended

Fund family HDFC asset management co. ltdLaunch date: Dec 08 1994
Bench mark: S&P CNX 500 Minimum investment: 5000 Asset size (Rs. Cr): 13866.53Last
dividend: N.A
Fund manger: Prashant JainEntry load: 0%

Page | 45
Exit load: 1%

Load comment: exit load 1% if units are redeemed or switched out within 1 year from thedate
of allotment.
Table no 4.8 showing NAV returns of HDFC equity fund

Duration NAV
20 march 2014 315.96
19 Sep 2014 455.63
19 April 2015 470.30
19 Oct 2015 465.39
19 April 2016 432.37
19 Oct 2016 510.33
19 April 2017 559.16
19 Oct 2017 631.65
19 April 2018 623.535
19 Oct 2018 573.50

Graph no 4.8 showing NAV returns of HDFC equity fund

Page | 46
Interpretation: The NAV returns of HDFC equity funds are in the stage of growing where the
returns are starts from 315.696 in the month of March 2014 to 631.65 in the month of October
2011. But in coming months the returns are reducing to 573.5 in the month of October 2018.
4 Reliance equitv fund (e)

Fund class: aggressive hybrid fundFund type: open ended

Fund family: reliance Nippon life assets management limitedMinimum investment: 500
Last dividend: N.A (as on 31st Dec 20l8)Launch date: Oct 01 2014
Fund manager: Sanjay Prakash, Amit TripathiEntry load: 0%
Exit load: 1%

Load comment: exit load of 1%, if redeemed or switched out on or before completion of I year
from the date of allotment of units, after 1 yr ni1.
Table no 4.9 showing NAV returns of Reliance equity fund

Duration NAV
21 march 2014 27.17
21 Sep 2014 36.55
21 April20l5 39.65
21 Oct 2015 40.96
21 April 2016 40.44
21 Oct 2016 45.35
21 Apri12017 48.03
21 Oct 2017 53.45
21 Apri12018 55.04

Page | 47
 21 Oct 2018 51.30

Graph no 4.9 showing NAV returns of Reliance equity fund

In
month of march 2014 to 55.04 in the month of April 2018, almost in these duration the
returns are in the positive like increasing mode. After this in the month of October 2018 the
returns came to down in the market that is 51.3.

4 Kotak equity hybrid —D( G )

Fund class: aggressive hybrid fundFund type: open ended

Fund family: Kotak Mahindra asset management co. ltdLast dividend: N.A
Minimum investment: 5000

Fund manager: Pankaj Tibrewal, Abhishek BisenEntry load: 0%

Page | 48
Exit load: 1%

Load comment: Exit load of 1% for redemptions or switched outs ( including SIP or STP)with
1 year from the date of allotment of units, irrespective of the amount of investment.
Table no 4.10 showing NAV returns of Kotak equity fund

Duration NAV
07 Nov 2014 18.00
07 May 2015 18.38
07 Nov 2015 18.66
07 May 2016 19.26
07 Nov 2016 21.93
07 May 2017 24.20
07 Nov 2017 25.42
07 May 2018 26.09
07 Nov 2018 24.46

Graph no 4.10 showing NAV returns of Kotak equity fund

Page | 49
Interpretation: The NAV returns of Kotak equity fund is starts earnings or the returns in the month
of Nov 2014 that is 18 to 26.09 of returns in the month of May 2018. After this returnscame down
for the month of Nov 2018 that is 24.46.
Table no 4.11 showine Comparison of NAV returns of equity fund:

Scheme 3 months 6 months 1 year 2 years 3 years 5 years

SBI equity hybrid fund(G) 3.2 3.9 9.0 10.9 12.6 15.5
HDFC equity fund (G): 6.2 5.1 12.2 11.7 18.1 16.1
Reliance equity fund (g) 2.7 -1.8 2.4 7.4 12.2 14.9
Kotak equity hybrid D(G) 3.4 2.0 3.4 6.3 12.5

Graph no 4.11 showing Comparison of NAV returns of equity fund

Interpretation: The NAV returns of equity funds are compare one another with its returns. In this
comparison the HDFC equity fund returns are high from the past five years. Alter this reliance
equity fund is earnings good than Kotak and SBI.

Page | 50
 2. STATISTICAL TOOLS:
Sharpe Ratio:

It specifies the risk-return performance of mutual funds. Sharpe's ratio (1966) planned an guide of
mutual funds presentation portion, raised as return to variability ratio denoted by S J A mutual
store conspire with a generally extensive extraordinary hazard may outflank the market in
Treyonr's record and may fail to meet expectations the market in Sharpe's proportion. He
expect that little financial specialist puts completely in the shared store and does not grip every
collection for killing random hazard then thus request of finest. Since budgetary experts in these
benefits can separate the threat by only strategy for holding different resources, it appears uncalled
for the rebuff these advantages for them.Sharpe’s index = ( Ri — Rf) / ni
Ri = portfolio return over a period j

Rf= without risk return over a period f

o I = total hazard, standard deviation of portfolio return j

Treyonr's Ratio Jack Treynor (1965)

The relationship between business sector execution and asset execution is given by thetrademark
line. He expect that the money related pro can wipe out unsystematic peril by holding an extended
portfolio. Truly his execution measure connected as t remains additional arrival above j peril
allowed frequency in each element with exact danger, figuratively speaking it shows chance
premium per unit of efficient risk. The obstacles of the treynor's index is that it can associated
with the arrangements with positive beats in the midst of the bull time of the market. If it
applied in bear phase the market scheme will give negative beta.
Treynor's index = ( Ri — Rf) / §jRi = range profit over duration j Rf= sans hazard coefficient p
Jensen's measure Jensen ( 1968 )

It has given different estimation and kept his thought towards the issue of surveying a hold boss
skill in giving huge yields of money related pros. They trails execution equally higher

Page | 51
arrival gave from range terminated typically. A positive estimation of J would demonstratethe
specific arrangement has J given positive value from CAPM return and bad regard x having
less than predictable revenues and lies underneath. Jensen show acknowledge that group totally
contributed which subjected main obstacles of model. It is measured of total execution in light of
the way that an unequivocal; standard is set and against that the execution is measured.
Jensen index = Ri [ Rf + §i (Rm - Rf} ]Ri= collection return
RR risk free rate Bi= portfolio beta Rm= market return
Beta

It dealings the unpredictability or a systematic risk in terms of beta of a safety with comparison to
the market as a whole which indicates the scheme profit where related bazaar yield. Actually it
measures exact peril and recognize how the expenses of advantages respond to the market
qualities. This classical to figure typical return as advantage in perspective of itsbeta and expected
market returns.
Beta is ascertained as,

b= covariance (Rx,Rm) / variance (Rm)

If beta is < , it is considered to be defensive and if it is > , considered as aggressive.

Page | 52
 CHPTER — 5

Findings and suggestions

Page | 53
Findings:

Some selected funds for the analysis the NAV returns of small cap fund from the past
5 years the SBI small cap fund is performing good. But in past 3 months it is
reduced in the returns.
Now in the small cap fund the reliance small cap fund is getting more returns compare
to other funds. In this the risk is more and the returns are more.
The Kotak Mahindra small cap fund is 3’ d place from the past 5 years. And now 2 nd in
the small cap funds returns. Now in the market the HDFC, Reliance and Kotak are
performing well in returns.
In the equity funds the HDFC equity fund is performing good, in this the risk is
more and the return is also more. In this fund the HDFC fund earnings is positive
from the past 5 years.
The SBI equity fund is also getting good returns but it has low risk and less
returns, and is a safer fund.
Then the Kotak equity fund is taken place of 3’d in the market.

Suggestions:

On this analysis in the basis of small cap fund we can invest in reliance small cap
fund.
In the basis of equity we can invest HDFC equity fund.

Page | 54
 Conclusion:

From the study it is concluded that RELIANCE small cap fund and the HDFC equity fund are
performing well. Conclusion which can be draw from the study are:
The investor invest in a fund which has goods NAV and good performing results to
NAV
It's advisable to invest in mutual funds, when share market indices exercising high
volatile & should wait for the correction to happen.
It is quite beneficial if in less ratio
It short if NAV of it is better to wait.

Balanced fund is performing well compare to other funds. In this risk is less. NAV returns are
fluctuating. Last one month NAV returns are decreased because of down fall in stock market. So
that it effects to the heavily on securities. Value of the securities are came down so there is no
NAV of mutual funds.

Page | 55
 Bibliography:

Website visited

• www.karvy.com
• www.monevcontro1.com

Reference

Henriksson, R. D. (1984). Market timing and mutual fund performance: An empirical

investigation. Journal of business, 73-96.
Huhmann, B. A., & Bhattacharyya, N. (2005). Does mutual fund advertising provide
necessary investment information?. International Journal ofBank Marketing, 23(4), 296-316.

Treynor, J., & Mazuy, K. (1966). Can mutual funds outguess the market. Harvard business
review, 44(4), 131-136.
Smith, Keith, V., Tito, Dennis, A., “Risk —return Measures of Post — Portfolio Performance”,
Journal of financial and quantitative analysis. vol 4, 2012, pp. 449-471..

Carlson, R. S. (1970). Aggregate performance of mutual funds, 1948—1967. Journal of

Financial and Quantitative Analysis, 5(1), 1-32.

McDonald, J. G. (1974). Objectives and performance of mutual funds, 1960-1969. Journal of

Financial and Quantitative Analysis, 9(3), 311-333.

Markowitz, H. “ Portfolio selection”. Journal of finance, vol.17, pp. 77-91

Grinblatt, M., & Titman, S. (1994). A study of monthly mutual fund returns and performance
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Gupta, L. C. (1981). Rates of return on equities. the Indian experience (Vol. 2). Delhi:
Oxford University Press.

Page 156
 Annexure

Profit and loss

Particulars 31" March 2018 3lstMarch 2017

(Rs in Cr) (Rs in Cr)
Revenue
Revenue from operations 14713.57 28016.53
Other income 15.14 9.69
Gain on disposal of business 26193.99
Total 40922.70 28026.22
Expenses
Operating expenses 22423.39 44929
Employee benefits 2265.47 3513.65
Finance costs 11195.71 21062.62
Depreciation and amortization 244.79 291.88
Other expenses 2775.34 2750.50
Total expenses 38904.70 32110.94
Profit/(loss) before tax 2018 00 (4084.72)
Income tax expenses
Current tax 198.94
Deferred tax 643.21 (1117.45)
Profit/ (loss) after tax 1175.85 (2967.27)
Profit for the year from discontinuing operation BT (1522.70) 266.57
Current tax (695.39)
Deferred tax 367.82 (185.04)
Profit for the year from discontinuing operations AT (1195.13) 451.61

Page | 57
Balance sheet

Particulars March 31st 2018 March 31st 2017

(Rs in Cr) (Rs in Cr)
Equity and liabilities
Share capital 7825.00 7825.00
Reserves and surplus 32845.50 31669.65
40670.50 39494.65
Noncurrent liabilities
Long term borrowings 14519.40 88609.13
Other long term liabilities 44.87
Long term provisions 2607.65 4662.41
17127.05 93316.41
Current liabilities
Short term borrowings 2285.51 9239.17
Trade payables
Total outstanding due to micro and small enterprises
Total outstanding due to creditors other than micro 65.60 280.78
and small enterprises
Other current liabilities 5590.49 49089.67
Short term provisions 458.30 187.40
8399.90 58797.02
Total 66197.45 191608.08
Assets
Noncurrent assets
Fixed assets
1. Tangible assets 109.94 605.00
2. Intangible assets 3.43 264.80
3. Intangible assets under development 25.97
Noncurrent investments 3924.68 3910.00
Deferred tax asset(net) 1038.08 1681.29
Long term loans and advances 18551.75 12116.46
Other noncurrent assets
23627.88 126603.56
42569.57 65004.56
Total 6619.45 11608.08

Page | 58
 ACHARYA INSTITUTE OF TECHNOLOGY
DEPARTMENT OF MBA

PROJECT(17MBAPR407) -WEEKLY REPORT

ACHARYA

NAME OF THE CTUDENT:

INTERNAL GUIDE: . JQ 0 k

EXTERNAL INTERNAL
WEEK WORK UNDERTAKEN GUI DE GU[DE
SIGNATURE SIGNATURE
3^ Jan 2019 - 9"’ Industry Profile and Company
Jan 2019 Profile
Preparation of Research
10“1 Jan 2019 —
instniment for data
17lan2019
collection
1 S“1 Jor 2019 —
Data collection
25”’ Jan 2019

26"' Jan 20t9 — Analysis and finalization

*" Feb 2019 of repon

3^ Feb 2019 — g4
h Findings and Suggestions
Feb 2019
10" Feb 2019 —
Conclusion 8nd Fin8l Report
16" Feb 2019

KARL
Opp. sai,c•{kegBRoad›
HOSPET- 5g3 2G1.
229738/38